Lululemon’s merchandising missteps hurt its premium positioning

The news: Lululemon paused online sales for a new collection of leggings after customers complained the fabric was sheer and not “squat proof,” the latest in a series of merchandising missteps.

Despite these issues, the “Get Low” collection remains available in stores and in markets outside North America, a spokesperson told Bloomberg.

Zoom out: Lululemon’s merchandising has been an ongoing challenge. The company has struggled to consistently produce products people want to buy, leaving it vulnerable to newer brands like Alo Yoga and Vuori, as well as established players like Nike.

However, the athleisure retailer’s problems go beyond poor trend forecasting. It has faced quality-control struggles, which in the long run could hurt its premium positioning and widen the door for competitors to win sales.

  • Just 18 months ago, lululemon pulled another line of leggings following criticisms of unflattering fit and poor construction. While the recall didn’t affect the retailer’s quarterly performance, it added to perceptions of a company struggling to meet customer needs.
  • The brand has had similar issues with sheer leggings in the past: In 2013, lululemon was forced to recall almost 20% of its bottoms inventory. The problem’s recurrence suggests the company may be more focused on pushing out new product and less on quality control.
  • Over two-thirds (67%) of US adults cite consistent product quality as a leading driver of loyalty, per a July 2025 survey by Net Conversion, making lululemon's continued missteps a significant barrier to long-term growth.

Takeaway for retailers: While apparel retailers face pressure to deliver newness, quality control remains critical. Brands that deliver subpar products—especially at a premium price point—risk eroding their cachet and losing customers to labels that are more consistent with execution.

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